10 February 2014

Advanced Photonix’s growth pauses while silicon photodiode production shut down

For fiscal third-quarter 2014 (ended 27 December 2013), Advanced Photonix Inc of Ann Arbor, MI, USA (which designs and makes APD, PIN, and FILTRODE photodetectors, HSOR high-speed optical receivers, and T-Ray terahertz instrumentation) has reported sales of $7.45m, roughly level with last quarter but up 28% on $5.8m a year ago.

Due primarily to a one-time accelerated depreciation charge related to the shutdown of silicon photodiode production, gross margin was 25.3%, down from 37% last quarter and 42% a year ago.

Operating expenses have been cut from $3.47m (59% of revenue) a year ago and $3.34m (43% of revenue) last quarter to $3.2m (43% of revenue).

Nevertheless, after being cut from negative $485,000 a year ago, adjusted EBITDA (earnings before interest, taxes, depreciation, amortization and stock compensation) was negative $205,000, compared with positive $20,000 last quarter. During the quarter, cash and cash equivalents have fallen from $371,000 to $116,000.

“While we are disappointed in the pause we saw this quarter in our revenue growth, we are encouraged by the traction we are getting in the 100G transmission market and the large funnel of potential sales developing for Terahertz,” comments CEO Richard Kurtz. “We are actively assessing strategic options to shore up our liquidity to fund the expected future growth for these opportunities,” he adds.

“We are still anticipating significant year-over-year growth this year,” says Kurtz. “However, due to the government sequestration that impacted our development contracts and pushed out the timing of the expected revenue, we have lowered our revenue growth for fiscal 2014 to be approximately 25% relative to the prior year.”

See related items:

Advanced Photonix’s revenue rises 18% quarter-on-quarter

Advanced Photonix’s annual sales fall 20%

Advanced Photonix’s quarterly sales rebound by 4%

Tags: Advanced Photonix

Visit: www.advancedphotonix.com